Foldrite Case

Topics: Laborer Pages: 4 (1207 words) Published: August 20, 2012
Group: Nguyen Huy Cuong
Le Quynh Anh
Dang Thi Xuan Phuong

SOLUTION FOR FOLDRITE FURNITURE CASE
Service level is 95% (5% of output is defect)
Wages skilled / labor hour = 19 + 33% * 19 = $25.27
Wages unskilled / labor hour = 9 + 10%*9 = $9.9
Hiring cost per worker (skilled) = $1,500/worker
Hiring cost per worker (unskilled) = 25*2*1.33 = $66.5/worker Training cost per unskilled to be skilled (4 weeks with full wage) = 4*9.9 = $39.6/worker Production requirement = demand forecast = Sum of (daily demand * production days) Production hours required (skilled) = Sum (Production requirement * time to produce one unit) Production hours required (unskilled) = Sum (Production requirement *time to produce one unit) Hours per month per worker = Workdays per month * Working hours a day (10) Workers required (skilled) = Production hours required (skilled)/hours per month per worker Workers required (unskilled) = Production hours required (unskilled)/hours per month per worker Hiring cost (unskilled) = No of new workers (unskilled) * hiring cost (66.5) Direct Labor cost = Production hours required (skilled) * wages (25.27) + Production hours required (unskilled) * wages (9.9) Layoff cost is calculated from http://www.coworkforce.com/uibestimator/ as given in the case Name| Jan| Feb| Mar| Apr| May| Jun| Jul| Aug| Sep| Oct| Nov| Dec| Total| Cloud Chair (unit)| 4,480| 15,000 | 45,000 | 73,800 | 65,250 | 79,200 | 86,400 | 67,150 | 34,000 | 27,000 | 14,400 | 12,600 | 524,280 | AlStrong (unit)| 18,816| 17,850 | 27,000 | 29,700 | 28,500 | 36,000 | 32,400 | 29,750 | 25,500 | 25,200 | 20,800 | 15,400 | 306,916 | GreenComfort (unit)| 16,960| 16,530 | 22,680 | 25,200 | 22,500 | 27,900 | 25,200 | 21,250 | 21,250 | 22,500 | 17,600 | 14,000 | 253,570 | Production day| 16|...
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